Notes: Exchange Rates may change throughout the day and may differ at the time of booking,and up-to the minute rates may be obtained by contacting any bank branch. Rates can only be guaranteed at the time the purchase or sale is conducted.

World Bank DocumentDocument of The World Bank Group FOR OFFICIAL USE ONLY Report No 21187-JM MEMORANDUM OF THE PRESIDENT FTZ Free Trade Zone REER Real Effective Exchange Rate IFI International Financial Institution USAID United States Agency for International

Risk and Return of Arbitrage in Dual-Listed Companies1 . . . 08 28 2000 12 14 2001 United Kingdom United States p 211) show that under reasonable assumptions about dividend payments and exchange rate volatility the impact of currency risk is very small Additionally, implementing a currency hedging strategy is inexpensive, so currency risk is unlikely to materially affect our findings